Treasuries ended Mon weaker after...>

US TSYS SUMMARY: Treasuries ended Mon weaker after mildly hawkish NY Fed Dudley

pushed mkt lower, with later 2-way flows and mild dip buying. Dudley in AP

interview said favored 3rd US rate hike in 2017; expects somewhat higher inflatn

readings mo-over-mo, S/Term rates "pretty low." 

- Tsys opened NY weaker after overnight give-back of Fri safe-haven pre- weekend

buying amid N.Korea/U.S. tensions. When geopolitics calm in weekend, accounts

unwound such safe-haven buys but carefully as N.Korea still event risk. US real$

arose in front end Tsys, while others did dip buying in Tsys 7Y, 10Ys. Cash

Tsys: accounts roll from May 2027 10Y to Aug 2027 10Y, before Tue 3/10/30Y

auction settlement. FX-tied buying nr 10:19am ET and later as US$/yen weak. Fast

money did steepeners against 30Y bonds. O/N Repo: Tsy 2Y note tight. MBS tight. 

- In Tsy futures, the Sep/Dec Tsy futures roll gets under way (only 1-2% Sept OI

rolled so far.) Fed Funds futures was decent block buy of 6,000 FFQ at 98.845 at

11:57am ET. 

- TSYS 3PM ET: 2Y 1.318%, 3Y 1.473%, 5Y 1.771%, 7Y 2.033%, 10Y 2.217%, 30Y

2.805%.